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Sir i hold a icicipru life time gold policy purchased in 2008, and been paying regular premiums of 50000 yearly.as till now i have paid 2,50,000/ since i have exceeded the minium period of 3 years,and paid up to 5 yrs my friends have advised me to stop the premium payments and let the policy go on a premium holiday , please explain what does this mean and would u advice the same ?.

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MIC Staff

March 12, 2013 : Answered in 1 Day

Please understand that if your friends have suggested you to stop paying premiums for a ULIP, please ask them the reason for the same as well.The MOST famous misconception about ULIPs is that premiums should be stopped after 3 years! People do not understand the mechanism of a ULIP that Fund Management charges and mortality keeps deducting from a ULIP even if you stop paying premium which gets deducted from the Fund Value and when you try to surrender the plan, it would fall short of your expectation because ULIPs are long term plans and can only break even in 7 years and not before that. It would surely exceed your expectations if you continue paying your premium and not otherwise.